Guide · Ad management

Local Services Ads vs Google Search Ads

Local Services Ads charge you per lead (a call, message or booking) and show your business with Google’s verification badge for local service searches. Google Search Ads charge per click and give you far more control over keywords, ads and landing pages. Many local service businesses run both: Local Services Ads for ready-to-call customers and Search Ads for wider reach and specific services.

Key takeaways
  • Local Services Ads: pay per valid lead, set a weekly budget, little control over targeting.
  • Search Ads: pay per click, full control of keywords, ads and landing pages.
  • Local Services Ads depend heavily on reviews and fast responses.
  • Running both, with good tracking, usually covers more of the market.

How Local Services Ads work

Local Services Ads are built for service businesses. According to Google’s help page on how leads work, you pay for valid leads related to your business, such as answered calls, messages, voicemails and, in the US and Canada, booking requests. You set an average weekly budget, and Google reviews leads, so invalid or low-quality ones aren’t charged and charged leads can be credited. Businesses go through Google’s verification to appear, and the ads show prominently for relevant local searches.

Search Ads appear for the keywords you choose, and you pay when someone clicks. You write the ads, choose the landing pages, set bids and budgets, and decide which searches to exclude. Google’s help page on managing spend explains that you set an average daily budget; on a given day spend can be up to twice that, but monthly charges are capped at the daily budget times 30.4.

Side-by-side comparison

Local Services Ads and Google Search Ads compared
Local Services Ads Google Search Ads
You pay for Valid leads: calls, messages, bookings Clicks
Budget Average weekly budget Average daily budget
Control Categories, services, areas and hours Keywords, ads, landing pages, bids, audiences
Trust signal Google verification badge and reviews Your ad copy, extensions and landing page
Eligibility Supported service categories and locations Most businesses
Best for Ready-to-call local service customers Specific services, offers and wider reach

Getting the most from Local Services Ads

  • Answer every call. Missed calls during business hours can still count as leads, so set hours you can staff.
  • Keep reviews coming. Reviews are visible on the ad and influence which business people contact.
  • Pick service types and areas carefully. Google notes that narrowing them can reduce unwanted leads, at the cost of some volume.
  • Check your leads regularly. Google reassesses charged leads for 30 days and lets you give feedback on poor ones; in many categories that can lead to credits.
  • Follow up on messages quickly. Message leads are often cheaper than calls, but only if someone replies.

When Local Services Ads fit best

  • You offer a service in one of the categories Google supports for Local Services Ads in your area.
  • Most of your jobs start with a phone call and you can answer quickly.
  • You already have, or can build, strong reviews.
  • You want to pay for contacts rather than clicks, and you don’t need detailed control.
  • You want to promote specific, high-value services, not just your category.
  • You want to send people to a particular landing page, offer or booking flow.
  • Your business type isn’t eligible for Local Services Ads.
  • You want to test messages, audiences and offers quickly.

Running both well

  1. Track every lead by source, calls included, so you can compare cost per lead and cost per job.
  2. Answer fast. Missed calls and slow replies waste both kinds of spend.
  3. Keep reviews coming. They help your Local Services Ads, your map listing and your conversion rate everywhere.
  4. Use Search Ads for the gaps: specific services, areas or campaigns that Local Services Ads don’t cover well.
  5. Review results monthly and move budget toward the lower cost per booked job.
Keep reading

Related guides

Setting a Google Ads budget

Work out a budget from the leads you need and what you can afford to pay for one.

Read the guide

Why ads aren’t converting

The usual causes: tracking, search terms, landing pages, follow-up and settings, and how to fix each.

Read the guide

Google Business Profile guide

Categories, services, photos, reviews and the details that help you show up in Maps and Ai answers.

Read the guide

Look up a term in the AEO & GEO glossary

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